Professor Antal E. Fekete is a renowned mathematician and monetary scientist. This site will illuminate some of his important ideas in the areas of:

Fiscal and Monetary Reform

Gold Standard University

Real Bills Doctrine

Basis

Discount versus Interest

Gold and Interest

In 1974 Professor Fekete delivered a talk on gold in Paul Volker�s seminar at Princeton University. Later, Professor Fekete was Visiting Fellow at the American Institute for Economic Research and Senior Editor for The American Economic Foundation. In 1996 his essay, Whither Gold?, was awarded first prize in the international currency essay contest sponsored by Bank Lips, the Swiss bank.

For many years an expert on central bank bullion sales and hedging, and their effects on the gold price and the gold mining industry itself, he now devotes his time to writing and lecturing on fiscal and monetary reform with special regard to the role of gold and silver in the monetary system.

At this moment, when the world�s monetary system appears increasingly shaky, Prof Fekete details why the current paradigm is flawed and how the problems must be dealt with. This is almost taboo in the main stream financial media. Prof Fekete explains it as a gold crisis, not a dollar crisis. Those who doubt it do well to recall that every fiat* money system ever tried � and history is littered with examples � failed.

* Money that is not backed by, or convertible to, any specific commodity and whose only value is that determined by government.

ANNOUNCEMENT: Professor Fekete's new book is now available!

CREDIT AND THE TWO SOURCES FROM WHICH IT SPRINGS
The Propensity to Save and the Propensity to Consume
A Treatise on Gold, Interest and Discount

Professor Fekete's Magnum Opus includes a comprehensive Theory of Interest in the manner of Carl Menger.

Volume One includes:
(1) The Ten Pillars of Sound Money and Credit and
(2) The Second Greatest Story Ever Told
Both of which have been out of print for a long, long time.

Volume Two is on Marginal Analysis that Post-Mises Austrian Economists have diluted; and on why the Discount Rate must be sharply distinguished from the Short Rate of Interest, a fundamental mistake Mises made.

Volume Three is on the wisdom of Adam Smith for our times, including the widsom of the Real Bills Doctrine (RBD)

The Quantity Theory of Money (QTM) is a thoroughly bad theory. Carl Menger on the RBD and the QTM.

Preview pages from Professor Fekete's new book on CREDIT

M E M O R A N D U M

TO WHOM IT MAY CONCERN

FROM: ANTAL FEKETE, NASOE

SUBJECT: GOLD BILLS PAYABLE IN GOLD SOVEREIGNS

DATE: SINGAPORE, THE IDES OF MARCH, MMXIV

For a number of years I have been working on a plan to reestablish gold coin and gold bill circulation that, in promoting peace and prosperity would equally benefit all nations. I came to the conclusion that the British sovereign was the most eligible coin for the purpose. It is the oldest coin that has been struck continuously at the Royal Mint without changing its in weight or fineness through many a year of peace, wars and revolutions. The sovereign financed world trade successfully between 1815 and 1914 and is fully capable to repeat this feat during the next one hundred years. It has the highest name-recognition of all coins ever struck anywhere. It is known and hoarded in all countries of the world. The sovereign is hall-marked with the name of Isaac Newton, �humanis generis decus�, Master of the Royal Mint and the father of the gold standard in modern times. On its reverse the sovereign depicts St. George in the act of slaying the dragon. Surely the symbolism will not be lost on people long suffering from the ravages of the global experiment with irredeemable paper currency, nor on producers of gold long unfairly prevented from bringing the benefits of their product to the world.

A firm in London yet to be named, herein called MondOr will upon delivering the metal draw gold bills on the Royal Mint payable in sovereigns. Thus the number one endorser of the gold bill is the Royal Mint. The drawer, MondOr, will offer gold bills to producers of gold or anyone else in exchange for gold brought to it or to its agents with no limitation on quantity. Gold bills are to mature in 91 days to reflect the time it takes for the Royal Mint to strike the coins from refining the metal through delivering the sovereigns. MondOr will auction off its surplus gold bills to the great trading houses financing world trade, among which the bills will subsequently circulate till expiry. At maturity the full face value of the gold bill is paid to bearer in sovereigns at the Royal Mint or at its agencies. Transfer is subject to endorsing and discount in the same way as it was a century ago. Endorsement represents the transfer of title; discount reflects the time remaining to maturity as well as supply and demand in the bill market. Both sovereigns and gold bills payable in sovereigns will be available to the general public with no charge for seigniorage and no charge for the cost of minting.

It would be hard to exaggerate the great historical significance of the rehabilitation of gold bill circulation after a hiatus of one hundred years, and that of gold coin circulation after a hiatus of four scores of years. Not only will world trade once again be financed with a currency that keeps its value from day to day, from year to year and from decade to decade as it did for a century prior to 1914 but, for the first time since 1933 it will be possible to exchange gold for a gold income and vice versa. Individuals will once more be able to save in confidence and earn a decent return in gold on their savings, no longer subject to crude central bank interference in contemptuous disregard of the virtue of saving. This is a giant step towards the realization of the ideal of Carl Menger (1840-1921): the peaceful and voluntary cooperation of individuals under the system of division of labor. The threat of war will be virtually eliminated - including the currency war between the United States and China. It is a giant step towards the prevention of the vanishing of world trade in consequence of gold rushing into hiding that is happening right now. It is a giant step towards eliminating unemployment, especially the blight of youth unemployment. All efforts that aim at abolishing poverty in the world without putting gold coins and gold bills back into circulation are doomed.

IN LOVING MEMORY

Dr. Judith Szepesvari passed away on March 10 in Budapest. Many of our followers knew and loved her from her efforts on behalf of NASOE business in the early years. she was in her 72nd year and spent the last 15 months of her life in hospitals, mostly unconscious during the last two months. We mourn her passing and honor her service.

ANNOUNCEMENT

(1) EFFECTIVE DECEMBER 31, 2012, I HAVE RETIRED AS PRESIDENT OF NASOE, FOLLOWING MY 80TH BIRTHDAY

(2) PROF. JUAN RAMON RALLO OF KING KARLOS UNIVERSITY, MADRID, SPAIN, HAS BEEN APPOINTED AS NEW PRESIDENT EFFECTIVE JANUARY 1, 2013

(3) AN ANONYMOUS DONOR HAS DONATED $1 MILLION TO ESTABLISH A FUND FOR THE PURPOSE OF SUPPORTING THE WORK OF NASOE. BY THE TERMS OF THE DONATION THE FUND IS TO BE KEPT IN PHYSICAL GOLD AND SILVER

(4) THE FIRST MEETING OF NASOE WILL BE IN MADRID, MARCH 29-31, 2013. MORE INFORMATION WILL BE AVAILABLE SOON

STATEMENT OF PROFESSOR FEKETE CONCERNING
THE GOLD STANDARD INSTITUTE

I have been involved in the consultations preceding the establishment of the Gold Standard Institute (GSI). I did see the benefits in providing liaison with governments, central banks, universities and other research institutions, political parties, etc., in trying to rectify the deplorably low level of understanding the historical and potential future role of a gold standard; to act as the clearing house of ideas and a forum for debates. I can testify that at no point was GSI envisaged as a �thought police�. If it had, I would have strenuously opposed it. As a monetary scientist I firmly believe that truth can be approximated only through debate, and more debate if needed; never by the threat or exercise of the power of excommunication.

I have never been an officer of the GSI, nor have I been an advisor to it after it was established. I have kept GSI at arm�s length. I was not privy to its decision to engage in a malicious rivalry of personalities which, if it has occurred, I regret and consider it harmful to the cause.

The original title for this article was Timing Hyperinflation with an overlong subtitle The Saga of Unraveling Global Fiat Money Issued on the Strength of Irredeemable Promises of Governments. On second thought I changed it for fear of turning off serious readers suspecting that it was written by a prankster to be released on next April Fool's Day. So the new title Waiting for Godot stands.It obviously calls for an explanation.

Timing Hyperflation

The Saga of Unraveling Global Fiat Money Issued on the Strength of Irredeemable Promises of Governments

Synopsis

The consensus pushed by mainstream economists almost all of whom are staunch supporters of global fiat money based, as it is, on irredeemable promises of governments, is that the problem of inflation has been disposed of through successful government measures such as QE (quantitive easing), ZIRP (zero interest policy) blowing bubbles in the bond, stock and real estate markets. Governments have also succeded in their war on gold: the precious yellow has been marginalized. Gold has been put where it belongs: in the dog-house.

In fact, I came to believed that the Austrian school was the last word in economics.... until I found a series of articles by an Antal Fekete on the Gold is freedom web site... essays about the gold standard, economics 101, Adam Smith's real bills doctrine... and other writings on economics and monetary science I had not seen before. I started to read his articles, intrigued by the fact that he was a countryman... and had what appeared to be interesting and educational insights into Austrian economics. - Rudy Fritsch, Canada